MIRA INFORM REPORT

Report No. :	333111
Report Date :	20.07.2015

IDENTIFICATION DETAILS

Name :	INDUCTOTHERM (INDIA) PRIVATE LIMITED
Registered Office :	Shri Kishorebhai D. Vyas Building, Ambli - Bopal Road, Bopal, Ahmedabad-380058, Gujarat
Tel. No.:	91-2717-231961 (8 Lines)/ 306196/ 306021
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	04.12.1982
Com. Reg. No.:	04-005739
Capital Investment / Paid-up Capital :	Rs. 10.000 Million
CIN No.: [Company Identification No.]	U29120GJ1982PTC005739
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	AHMI00050B / AHMI00562C / AHMI00522E
PAN No.: [Permanent Account No.]	AAACI3672B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Induction Melting Furnaces, Induction Heating Furnaces and Induction Welding Equipment.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

A (68)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a subsidiary of “Inductotherm USA”. It is an established company incorporated during the year 1982 having a good track record. Available financials indicates company strong financial risk profile marked by healthy networth position with decent profitability and favourable gap between trade payables and trade receivables. The rating also takes into consideration zero debt balance sheet of the company. Trade relations are reported as fair. Business is active. Payments terms are reported to be regular and as per commitment. In view of strong holding support and strong financial base, the company can be considered good for normal business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Bank Facilities = AA+
Rating Explanation	High degree of safety and very low credit risk
Date	18.11.2014

Rating Agency Name	CARE
Rating	Short Term Bank Facilities = A1+
Rating Explanation	Very Strong degree of safety and carry lowest credit risk.
Date	18.11.2014

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2013.

INFORMATION DENIED BY

Name :	Mr. Mihir Patel
Designation :	Finance Manager
Contact No.:	91-2717-231961

LOCATIONS

Registered/ Head Office/ Factory:	Shri Kishorebhai D. Vyas Building, Ambli - Bopal Road, Bopal, Ahmedabad-380058, Gujarat, India
Tel. No.:	91-2717-231961 (8 Lines)/ 306196/ 306021
Fax No.:	91-2717-231268 / 66
E-Mail :	finance@inductothermindia.com iil@inductothermindia.com accounts@inductothermindla.com sales@inductothermindla.com spares@inductothermindla.com
Website :	http://www.inductothermindia.com
Location :	Owned

DIRECTORS

AS ON: 24.07.2014

Name :	Mr. Jagat Jayant Shah
Designation :	Managing Director
Address :	“Saumya”, C-62, Sterling City, Bopal, Ahmedabad - 380058, Gujarat, India
Date of Birth/Age :	19.03.1942
Qualification :	M.S. (Mechanical) USA B.E. (Mechanical)
Date of Appointment :	21.06.1999
Voter ID No.:	LPZ1555317
DIN No.:	00198802
Name :	Mr. Bharat Lallubhai Sheth
Designation :	Director
Address :	9/10, Bhanuchandra, Cooperative Society, Near Ranchodji Temple, Jivrajpark, Ahmedabad, Gujarat, India
Date of Birth/Age :	30.11.1949
Date of Appointment :	01.04.2001
DIN No.:	00181139
Name :	Mr. Henry M. Rowan
Designation :	Director
Address :	C/O, Inductotherm Corporation, 10 Indel Avenu, Rancocas, New Jersey, USA-08073
Date of Birth/Age :	04.12.1923
Date of Appointment :	31.12.1988
DIN No.:	00179462
Name :	Mr. Michael Anthony Nallen
Designation :	Director
Address :	9, Perennial Lane, Hampden MA 01036, USA
Date of Birth/Age :	19.07.1960
Date of Appointment :	21.06.2011
DIN No.:	03364228
Name :	Mr. Satyen Nagesh Prabhu
Designation :	Director
Address :	C/O, Inductotherm Corporation, 10 Indel Avenu, Rancocas, New Jersey, USA-08073
Date of Birth/Age :	17.10.1961
Date of Appointment :	09.12.1999
DIN No.:	00173080
Name :	Mr. Gary Anthony Doyon
Designation :	Director
Address :	80, Touraine Road, Grosse Pointe Farms, Michi Gan, USA-48236
Date of Birth/Age :	13.01.1959
Date of Appointment :	19.06.2008
DIN No.:	02129096
Name :	Mr. Chirag Girishbhai Sitwala
Designation :	Whole-time director
Address :	D-23, Ishan-2, Opposite Karnavati Club, SG Highway, Satellite, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	30.11.1968
Qualification :	Diploma in Electronics
Date of Appointment :	17.07.2012
DIN No.:	05322617
Name :	Mr. Naishadh Nalinkant Parekh
Designation :	Whole-time director
Address :	501, Shailraj Tower, Nirant Co-operative Housing Society, Vibhag IV, Vastrapur, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	22.02.1957
Date of Appointment :	17.07.2012
DIN No.:	05324759
Name :	Mr. Prakash Dinkar Chaubal
Designation :	Whole-time director
Address :	5, Suyash PM Road, Vile Parle (East), Mumbai-400057, Maharashtra, India
Date of Birth/Age :	28.08.1951
Qualification :	B.E. (Electronics)
Date of Appointment :	17.07.2012
DIN No.:	05324762
Name :	Mr. Vijay Vasudev Joshi
Designation :	Whole-time director
Address :	14, Meera Madhav Apartments, Gulbai Tekra, Ahmedabad-380006, Gujarat, India
Date of Birth/Age :	27.09.1951
Qualification :	B.E. (Electronics)
Date of Appointment :	17.07.2012
DIN No.:	05322628

KEY EXECUTIVE

Name :	Mr. Mihir Patel
Designation :	Finance Manager

MAJOR SHAREHOLDERS

AS ON: 24.07.2014

Names of Shareholders	No. of Shares
Inductotherm Technologies Inc., USA	99999
Bharat Lallubhai Sheth	1
Total	100000

Equity Share Break up (Percentage of Total Equity)

AS ON: 24.07.2014

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	99.99
Directors or relatives of directors	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Induction Melting Furnaces, Induction Heating Furnaces and Induction Welding Equipment.

Products :

Product Description	Item Code No. (ITC Code)
Induction Melting and Heating Equipments	85142000

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Divulged

Imports :

Not Available

Terms :

Not Available

PRODUCTION STATUS = NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Available
Name of the Person :	Not Available
Contact No.:	Not Available
Since How Long Known :	Not Available
Experience :	Not Available
Maximum Limit Dealt :	Not Available

Customers :

Reference :	Not Available
Name of the Person :	Not Available
Contact No.:	Not Available
Since How Long Known :	Not Available
Experience :	Not Available
Maximum Limit Dealt :	Not Available

No. of Employees :

Information declined by the management.

Bankers :

• State Bank of India, SPL, Commercial Branch, Gandhigram, Opposite Gandhigram Railway Station, Ahmedabad - 380009, Gujarat, India

Auditors :
Name :	Chandabhoy and Jassoobhoy Chartered Accountants
Address :	605-607, Silveroaks, Near Mahalakshmi Char Rasta, Paldi, Ahmedabad - 380007, Gujarat, India
PAN No.:	AABFC0696F
Memberships :	Not Available
Collaborators :	Not Available
Holding Company :	Inductotherm Technologies Inc., USA.
Fellow Subsidiaries :	Inductotherm Corporation, USA Inductoheat Inc., USA High Energy Corp. USA Inductotherm Europe Limited Inductotherm Group Australia Limited Lepel Corporation Magnetic Metals Thermatool Corporation Newelco (India) Private Limited Inductoheat Europe GMBH Inductotherm Group Taiwan Limited Inductotherm Group Japan Limited Inductotherm Ind. (Shanghai) Limited Inductotherm Induksiyon Sistemleri, Inductotherm Group Korea Limited Inductotherm Group Pune Private Limited Alpha 1 Induction Service Centre Consarc Engineering Limited Inductotherm Group Brasil Ltda Inductotherm Heating & Welding Technologies Limited Inductotherm Coating Equipment, SA PT Inductotherm Indonesia Radyne Corporation Indel Inc. Servemelt Commercial Ltda. Onderlan S.L.
Subsidiary Company :	· Newelco India Private Limited CIN : U31909DL1994PTC057720

CAPITAL STRUCTURE

AS ON: 24.07.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs.100/- each	Rs.20.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.100/- each	Rs.10.000 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	10.000	10.000	10.000
(b) Reserves & Surplus	2632.551	2064.424	1848.458
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	2642.551	2074.424	1858.458
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	0.000	0.000	0.000
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	210.103	206.667	172.268
(c) Other current liabilities	779.405	822.209	837.479
(d) Short-term provisions	2084.041	2664.987	2244.571
Total Current Liabilities (4)	3073.549	3693.863	3254.318
TOTAL	5716.100	5768.287	5112.776
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	500.241	508.936	231.877
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	105.038	16.445	4.721
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.579	0.599	0.824
(c) Deferred tax assets (net)	60.921	72.334	74.358
(d) Long-term Loan and Advances	5.672	5.425	281.014
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	672.451	603.739	592.794
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1089.676	923.321	940.013
(c) Trade receivables	622.611	499.878	382.914
(d) Cash and cash equivalents	1218.951	1072.146	997.691
(e) Short-term loans and advances	2112.411	2669.203	2199.364
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	5043.649	5164.548	4519.982
TOTAL	5716.100	5768.287	5112.776

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Turnover	4244.600	4003.600	3974.760
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA
Less	EXPENSES
		TOTAL	NA	NA	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		1440.936	1327.841	1182.481
Less/ Add	DEPRECIATION/ AMORTISATION		40.375	40.589	39.837
	PROFIT BEFORE TAX		1400.561	1287.252	1142.644
Less	TAX		481.448	432.062	386.146
	PROFIT AFTER TAX		919.113	855.190	756.498
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1414.424	1298.458	541.960
Less	APPROPRIATIONS
		Interim Dividend paid	300.000	550.000	0.000
		Corporate Dividend Tax	50.985	89.224	0.000
		Transfer to General Reserve	100.000	100.000	0.000
	BALANCE CARRIED TO THE B/S		1882.552	1414.424	1298.458
	EARNINGS IN FOREIGN CURRENCY		1814.730	1258.260	1198.830
	Earnings Per Share (Rs.)		9191.12	8551.90	7564.98

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	NA	NA	NA
Cash generated from operations	NA	NA	NA
Net cash flows from (used in) operations	1085.360	1469.078	731.719

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	21.65	21.36	19.03
Return on Total Assets (PBT/Total Assets}	(%)	25.24	22.67	22.70
Return on Investment (ROI) (PBT/Networth)		0.53	0.62	0.61
Debt Equity Ratio (Total Debt /Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		1.64	1.40	1.39

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	10.000	10.000	10.000
Reserves & Surplus	1848.458	2064.424	2632.551
Share Application money pending allotment	0.000	0.000	0.000
Net worth	1858.458	2074.424	2642.551
long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	0.000	0.000
Total borrowings	0.000	0.000	0.000
Debt/Equity ratio	0.000	0.000	0.000

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	3974.760	4003.600	4244.600
		0.726	6.020

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	3974.760	4003.600	4244.600
Profit	756.498	855.190	919.112
	19.03%	21.36%	21.65%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	No
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	No
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	---
33	Market information	---
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

OPERATIONS

The company has reached a new peak by achieving the highest ever turnover of Rs. 4244.600 Million in the history of the company, in spite of volatile economic environment in India as well as globally. The equipment turnover of Melting Division and Welding division has increased by 12% and 10% respectively, whereas in heating division, the equipment turnover has decreased by 11% due to slowdown in automotive industry. The company is able to maintain the spares turnover due to increased population of their equipment in the market. The company has received order from BSRM, Bangladesh for supply of 4 sets of 50T Furnace and 22,000 kw P.T. during the year and the whole order has been delivered in timely manner, except for certain auxiliaries. For the first time in the history of company they have manufactured 50T Furnace and 22,000 kw P.T. for the world’s largest steel melt shop, BSRM, Bangladesh.

NEW FACTORY PROJECT

The earth filling work and compound wall work is almost completed. The tender for PEB venders was already floated and we received 5 tenders of PEB venders in response. The process of negotiation and finalising the PEB vendor will be completed shortly. The cost quoted by PEB vendors is around Rs. 550.000 Million to 600.000 Million. Simultaneously, the process for civil work tender is also initiated and the tenders will be floated shortly. The board of directors have approved the New Factory Project of Rs.2400.00 Million and have consented for 1/3 of the project amount i.e. Rs.800.000 Million for expenditure relating to PEB and civil construction works.

FIXED ASSETS

· Land

· Building

· Electrical Installations

· Computers

· Office Equipment’s

· Furniture and Fixture

· Computers

· Vehicles

· Type Writers

· Air conditioner

· Electric Fans

· Xerox Machine

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.49
UK Pound	1	Rs.99.42
Euro	1	Rs.69.14

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	SNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILITY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--MARGINS	-5~5	-------
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		68

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.